A savvy trader, identified as wallet “0x303,” made a remarkable $2.7 million profit in just three days by trading the Donald Trump-themed MAGA (TRUMP) meme token.
On May 25, this trader spent over $535,000 to purchase six billion MAGA tokens, achieving an impressive 505-fold return on investment, as highlighted in a May 27 X post by Lookonchain:
“He spent $537.5K to buy 6B $MAGA on May 24 and May 25, then sold 1.5B $MAGA for 744K $USDT to take profits 10 minutes ago. He currently holds 4.5B $MAGA, worth $2.51M.”
The trader’s wallet, comprised entirely of MAGA tokens, has surged by over 82% in the past 24 hours.
At present, the wallet is valued at over $2.2 million, although it was worth more than $4 million earlier today, around 7:00 am UTC, according to CoinStats data.
The MAGA token has experienced significant price increases following pro-crypto comments by Republican presidential candidate Donald Trump.
On May 9, the token saw an intraday surge of over 78%, with trading volume rising by more than 62% to $281 million, driven by Trump’s supportive remarks on cryptocurrencies:
“I’m fine with it. I want to make sure it’s good and solid and everything else.
“But I’m good with it.
“And if you like crypto in any form (and it comes in many different forms), if you are in favor of crypto, you better vote for Trump.”
The rapid profit made by the trader has sparked allegations of insider trading. Datawallet commented on Lookonchain’s post, stating:
“No one spends $500k on a memecoin without some ‘extra’ knowledge.”
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Last week, Lookonchain reported that an insider had been selling MAGA tokens, who had initially spent 5.35 Ether to acquire 33% of the MAGA supply through 22 different wallets.
However, these transactions might be due to maximal extractable value (MEV) bot activity, which exploits arbitrage opportunities to generate significant profits, rather than insider trading, as suggested by pseudonymous X user Dominium:
“That’s MEV bot transactions if you look at it carefully.”
Whether the MAGA pump was driven by insider trading or not, memecoins remain highly volatile and risky.
An unfortunate trader recently lost over $1 million in the Normie memecoin exploit, resulting in a loss exceeding 99% of his initial $1.16 million investment.
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